Thursday, September 3, 2009

Tangible evidence the market responds

An East Texas friend of mine was pretty upset (most Texans get this way pretty quickly when the federal government tries to impose a mandate on them) when our federal government proposed to mandate a national animal identification system and when they mandated Country of Origin Labeling, referred to as COOL. My initial thought was this: if consumers want their food sources verified, they will demonstrate it through their buying preferences.

A recent article found in the on-line version of cattlenetwork provides tangible proof the market will respond without Washington imposing a costly and certainly burdensome system. Because of an international market demand and trade agreement with Japan, U.S. Premium Beef is offering an age and source verification premium on cattle. Notice the theme in the drivers behind that decision? Answer: the market.

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